News Corp racked up $87m of legal fees in final quarter of 2011

The News of the World phone-hacking scandal cost parent company News Corp $87m in the last quarter of 2011.

The company’s financial results for the last quarter of 2011, announced to the London Stock Exchange last week, show $87m costs related to “the ongoing investigations initiated upon the closure of The News of the World”.

The total cost of the investigations, which span the last six months of 2011, was $104m. According to the stock exchange announcement, around 85 per cent of the charges relates to “fees to outside lawyers and advisers working on various investigations and committee hearings in the UK”, while the rest was spent on settlements to hacking victims.

The company declined to speculate on what the total cost of the hacking scandal might be.

In the three months leading up to 31 December the company’s revenue grew 2 per cent, to $8.98bn, while operating income grew 16 per cent, to $1.50bn.